Seller financing means that instead of going to a bank for a loan, the owner of the Mercantile building has agreed to essentially act as the lender himself. This is a huge deal for our campaign — it means we don't need to qualify for a traditional commercial mortgage, a strong balance sheet, or a personal guarantee. It gives us the runway to raise funds from the community and close this deal on a timeline that works for everyone.

The full asking price is $1,500,000 for the Mercantile building and the adjacent building on Main Street. The building is listed on the National Register of Historic Places, making it eligible for a range of historic preservation grants that can help us get there.

We've proposed a three-stage fundraising structure:

• Minimum / First Close (by end of 2026): At least $500,000, sourced from our community fundraising campaign

• Target Down Payment (Spring 2027): $1M, leaving a possibility of a seller-carried balance of $500,000

• Stretch Goal: Raise the full $1,500,000 and retire the purchase price entirely — no remaining balance

 It is the target down payment that unlocks the most favorable terms for the nonprofit and the community. At that level, the remaining $500,000 balance is carried by the current owner over approximately 10 years with a modest annual interest — a manageable, mission-friendly structure. Below that threshold, the seller-carried balance is larger and the ongoing financial obligation to the nonprofit is heavier. The existing rental leases already in place can readily cashflow at $500,000 seller’s note. Raising $1.5M is our stretch goal because it puts the organization on the strongest possible financial footing going forward. 

Equity title means the nonprofit holds full legal ownership of the property. Once we have equity title, the building is permanently secured for community use — it cannot be sold to a developer without the full nonprofit board's approval, and its use is legally bound to our charitable mission. Until title transfers, the building remains the current owners property. This is why closing — even at the minimum threshold — is so important: it moves us from a fundraising campaign to a legally protected community asset. This is the moment when the cash flows from existing leases move from going to the current owner to the non-profit. 

Correct — no bank, no institutional lender. This is a direct agreement between our nonprofit and the current owner. That's an extraordinary act of generosity and trust on his part, and one of the key reasons this campaign is viable.

Any seller-carried balance will be formalized in a Promissory Note secured by a Deed of Trust on the property — standard real estate instruments that protect the current owner’s financial interest until he is fully paid out.

The current owner has expressed genuine care for the future of the Mercantile and the Jamestown community. He has been supportive of the nonprofit vision from the beginning and wants to see the building preserved for community use. This arrangement reflects both his generosity and his trust in the campaign — something we don't take lightly.